Cooler tones and ample lighting are two ways to make a space feel larger. Furniture pieces with slim legs and details that are lifted off of the floor a few more inches, give an airy, spacious look. You might also consider incorporating reflective surfaces such as a mirror to catch light, or a polished lighting fixture to draw the eye upward. Hope this helps--good luck!

Can you rIse the hallway ceiling height and leave the bedroom heights as mentioned? This is your best solution since the hallway is open to the open concept kitchen...

You don't see this much in photos. Usually the mouldings are painted the same colour as the ceilings which of course lowers the ceiling height even more! Vertical stripes would be fun!

Yay! I'm so glad it all worked out and you love it. Who cares what people think, as long as you guys love it! You're the ones who have to live in the house anyway haha - pops of colour are great! Do you mind putting up a photo of the room? I'd love to see what you've done with it!